Non-US Online Retail ETF Planned

September 17, 2018

A recent filing from Amplify ETFs outlines plans for a non-U.S. version of the $560 million first-to-market Amplify Online Retail ETF (IBUY), which is globally oriented. The Amplify International Online Retail ETF (XBUY) will target foreign companies that generate 90% or more of their revenue from online sales.

The underlying index’s selection universe covers all non-U.S. securities listed on exchanges that are available to investors from outside their home countries. All securities with market capitalizations of more than $100 million that meet liquidity requirements are included in the index, according to the prospectus.

Selected components are equally weighted to start, but then those weightings are adjusted for liquidity, with those ranking in the top 80% afforded more weights, while those in the bottom 20% see their weights cut in half. Additionally, individual countries are limited to 25% of the total index during the index’s quarterly rebalancings and reconstitutions, the document says.

IBUY launched in April 2016 and quickly accumulated assets. Despite its global focus, the U.S. has a weighting of nearly 87% in IBUY’s portfolio, leaving much room for a fund targeting non-U.S. stocks.

Contact Heather Bell at [email protected]

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